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(January 19, 2018, Shanghai) Recently, Hilong Oil Service and& Engineering Co., Ltd. (“Hilong Oil Service”), an indirectly wholly-owned subsidiary of Hilong Group, entered two contracts with Petroleum Development Oman (“PDO”) to provide automated land drilling rig services. The signing of the two contracts is the start of cooperationllaboration between Hilong Oil Service and PDO, marking a breakthrough for Hilong Oil Sservices in the Middle East.

The initial operating period of the contracts is 10 years, which can be further extended by 60 months. Hilong’s HL58 and HL59 drilling rigs will provide drilling rig services for each contract. The annual consideration for each contract will be no less than USD10 million per drilling rig.

“The signing of these long-term service contracts marks a major breakthrough for Hilong’s oil service business in overseas markets, especially in the Middle East and shows strong relationship and mutual recognition between Hilong and large oil producers, giving Hilong a new impetus to business development in overseas and Middle Eastern markets,” said Wang Xianglei, general manager of Hilong Group Oil Service Business, adding that “for PDO, as Oman’s largest oil company, with high and stringent demands, Hilong’s excellent technical and service capabilities are the key to promoting cooperationcollaboration, and these long-term contracts come from Hilong’s superior reputation and public praise that it has established in the international market.”

PDO is a leading oil and natural gas exploration and production company in the Sultanate of Oman (“Sultan”), providing most of Oman’s crude oil production and natural gas supply. The Company is a joint venture co-founded by the Government of Oman (which has a 60% interest), the Royal Dutch Shell (which has a 34% interest), Total (which has a 4% interest) and Partex (which has a 2% interest). Operating over an area of about 90,000 square kilometers (one third of Oman’s geographical area) in a franchised region, PDO owns 178 production oil fields, 21 production workstations, and about 10,000 active oil wells, owning over 8,800 employees and over 40,000 contractors from 64 countries presently.